2023 (9) TMI 1496

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....venue : Dr. Darsi Suman Ratnam, CIT-DR. ORDER PER BENCH: These are four appeals; three by the assessee and one by the Revenue against the separate orders of the ld. Commissioner of Income Tax (Appeals), National FacelessAppeal Centre (NFAC) of even dated 29.11.2022 passed under section 250(6) of the Income Tax Act, 1961 [hereinafter referred to as "the Act" for short] for the captioned assess....

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....h the parties and gone through orders of the authorities below. 6. As the facts can be noticed from orders of the Revenue authorities, the AO noted the assessee had claimed exempt dividend income of Rs. 5,298/- on investment made by the assessee and also claimed interest expenses of Rs. 5,04,35,666/-. The AO construed the impugned investment made for earning exempt was made out of borro....

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....s, and therefore, the interest free funds available with the was assessee more than its investment, and as such there was no reason to invoke provisions section 14A r.w.r. 8D for making disallowance. The assessee further submitted in the earlier years also similar disallowance made by the assessee was allowed without any further disallowance by the ld.CIT(A) in appeal, which was accepted by the de....

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....nts on the issue that when interest free funds are available, which is more than the investment made for earning exempted income, by the assessee, the presumption is that, investment so made is out of interest free fund. Before us, there is no material to support the case of the Revenue that the assessee had utilized borrowed funds for investment for earning exempt income. Admittedly, similar clai....